Government shutdown: What does it mean and how will it impact people, businesses?
Congress is on the brink of a government shutdown, and many Americans are left wondering about the potential consequences. In this guide, we explore what a government shutdown entails and how it could affect various aspects of daily life.
What is a Government Shutdown?
A government shutdown is a situation that arises when Congress fails to approve funding for the federal government before the start of the new fiscal year on October 1st. The federal budget consists of 12 appropriation bills that determine discretionary spending for federal agencies. If Congress cannot pass all or some of these bills, it leads to a government shutdown, with certain government functions deemed essential continuing to operate.
How does a government shutdown impact people?
A government shutdown has a ripple effect on various government services, which can disrupt the lives of many Americans. However, essential services like Social Security payments to seniors and disabled individuals, as well as regular Postal Service operations, continue unaffected. In some cases, states may use their own funds to keep national parks open, offering some relief to visitors.
How will a government shutdown affect government employees?
One of the most significant impacts of a government shutdown is on federal employees and military service members. During a shutdown, millions of these workers do not receive their pay until the shutdown concludes. «Essential» employees, who work in roles related to public safety and national security (e.g., law enforcement and air traffic control), continue working without pay. Conversely, «non-essential» employees face furloughs or temporary suspensions.
Both groups must find ways to manage their finances until the
